The ABC’s of Finance

 In Blog



t a young age, we begin our education and learn the basics of mathematics, history, and other formal schooling related topics. We learn to wear our seatbelt and wait for the crosswalk to signal OK before we cross the road. At almost every point in our lives, we pick things up along the way either through osmosis or formal education. But an area that has fallen by the wayside is personal finance.

Ironically, at a young age, many of us begin making very adult and significant decisions related to college loans and cash flow before we fully understand the impact such decisions may have down the road. And to make matters worse, many of us haven’t learned the benefits of saving and compounding. Without understanding the basics, it is easy to see how as a topic gets further and further removed from our daily practices, the scarier it is to learn. But it doesn’t have to be this way.

Whether you are working with a financial advisor or not, we believe financial literacy is imperative. There is a common misconception that if you hire a professional, you don’t “need” to understand the ins and outs of what they do on your behalf. But we disagree. We believe that when you have a better understanding of personal finance and why investment decisions are made, you ultimately make better decisions related to spending, saving, borrowing, and legacy planning.

Of course, we understand that every client is different and their level of involvement is completely up to them – but we strongly encourage you to ask questions when you don’t understand a concept or are curious about something you read or saw in the news. In essence, our aim is not only to support you, but empower you at the same time. This dual objective can set the stage for a more collaborative and productive experience.

Just as it is our goal to be in your corner and support your decision making as it relates to your personal finances, we strive to keep you informed and educated along the way. We encourage you to engage with your children and family members so they are involved and have a basic understanding of personal finance and management as well. If you believe a member of your family would benefit from coming in to speak with us about the ABC’s of finance, we are happy to support this process.

Vahanian & Associates (“Vahanian”) created this presentation for its website. Any other distribution of this presentation is strictly prohibited. While the content presented is believed to be factual and up to date, it is based on information obtained from a variety of sources. Vahanian believes this information is reliable, however, it has not necessarily been independently verified. Vahanian does not guarantee the complete accuracy of all data in this blog post, and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of Vahanian as of the date of publication and are subject to change. This blog post does not constitute personalized advice from Vahanian or its affiliated investment professionals, or a solicitation to execute specific securities transactions. Vahanian is not a law firm and does not intend for any content to be construed as legal advice. Readers should not use any of this content as the sole basis for any investment, financial planning, tax, legal or other decisions. Rather, Vahanian recommends that readers consult Vahanian and their other professional advisers (including their lawyers and accountants) and consider independent due diligence before implementing any of the options directly or indirectly referenced in this blog post.

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